NOVELTY chocolates will be launched worldwide this year, thanks to a County Durham firm.

Chocpix, in Barnard Castle, produces white chocolate bars containing high resolution, 3D images.

The bars can depict pictures with a resolution of one-tenth of a millimetre.

Its manufacturers believe this has endless potential to generate sales as an "edible postcard" featuring landmark buildings, or through depicting sports teams, pop acts and film stars.

Companies already expressing an interest include the makers of Channel 4 show Big Brother; coffee chain Starbucks, chocolate- maker Thorntons and retailer Woolworths.

Frank Lia, managing director, said: "The potential is enormous. We have been bubbling along under the surface, but are ready now to explode on the marketplace."

It is launching the upmarket chocolate treats across the world, after securing global patent protection for its unique moulding process.

The firm's target this year is to achieve sales of £600,000, rising to £10m within five years.

It estimates its sector in the UK alone is worth £650m a year, with a global market of about £3bn. This should also generate up to 40 jobs.

"From a standing start, £10m sounds quite high, but it is actually quite modest," said Mr Lia.

"That is a fraction of a per cent in the global market."

The company was established in 2003, but the high costs of producing a mould meant it was restricted to the top end of the market, such as corporate and promotional gifts.

These included a bar featuring the Nissan 350Z sports car, and another to celebrate the launch of the children's film, The Magic Roundabout.

The firm launched the bars at the ISM chocolate show last year in Cologne, and won the best new British product prize.

"We went with a prototype and not much of a clue, to see what our peers thought of it," said Mr Lia. "Everyone loved the product, but we weren't able to get sales, because we weren't competitive."

The company's three directors have spent the past year working out how to cut costs to bring their novelty treats to market.

"The first mould we made cost £3,000," said Mr Lia. "In six to eight weeks' time, we will have it probably below £50. That lets us into a whole range of new markets."

The moulds will be made in Barnard Castle and Chocpix will use industry partners to produce goods under licence.

The firm is in negotiations with major chocolate companies in Australia, Belgium and Germany.

It will have a stand at an industry show in Chicago, in June, and is so confident of picking up US orders that it is already in talks with a chocolate-maker in Canada.

In order to meet this expected demand for moulds, it is buying new machinery for its factory on the Harmire Industrial Estate.

The investment was made possible by £100,000 in funding from Evolve Finance, a division of regional fund management company, NEL.

Mr Lia said: "The investment from Evolve has come just at the right time and is allowing us to extend our North-East facilities, which was important for us as we're proud of our regional heritage.

"We've been able to put more money aside for developing patents and prototypes, as well as packaging design, all of which take significant investment."

James Warren, loan executive at NEL's Teesside office, said: "Chocpix has developed a unique confectionery that is already creating a stir in the market.

"We were keen to support such innovation within the North-East marketplace, with an investment that could help take the product to the next level."